Depreciation by Three Methods; Partial Years
Layton Company purchased tool sharpening equipment on October 1 for $37,800. The equipment was expected to have a useful life of three years or 4,320 operating hours, and a residual value of $1,080. The equipment was used for 800 hours during Year 1, 1,500 hours in Year 2, 1,300 hours in Year 3, and 720 hours in Year 4.
Required:
Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method.
Note: FOR DECLINING BALANCE ONLY, round the multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar.
a.Straight-line method
Year
|
Amount
|
Year 1 |
$fill in the blank 1 |
Year 2 |
$fill in the blank 2 |
Year 3 |
$fill in the blank 3 |
Year 4 |
$fill in the blank 4 |
b.Units-of-activity method
Year
|
Amount
|
Year 1 |
$fill in the blank 5 |
Year 2 |
$fill in the blank 6 |
Year 3 |
$fill in the blank 7 |
Year 4 |
$fill in the blank 8 |
c.Double-declining-balance method
Year
|
Amount
|
Year 1 |
$fill in the blank 9 |
Year 2 |
$fill in the blank 10 |
Year 3 |
$fill in the blank 11 |
Year 4 |
$fill in the blank 12 |